Pleasing Signs As A Number Of Insiders Buy Luxfer Holdings Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Luxfer Holdings PLC's (NYSE:LXFR) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Luxfer Holdings
The Last 12 Months Of Insider Transactions At Luxfer Holdings
The Independent Chairman of the Board Patrick Mullen made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$16.12 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$14.23). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Luxfer Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Luxfer Holdings insiders own about US$6.9m worth of shares (which is 1.8% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Luxfer Holdings Tell Us?
It doesn't really mean much that no insider has traded Luxfer Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Luxfer Holdings insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Luxfer Holdings. Be aware that Luxfer Holdings is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course Luxfer Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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